Evaluating: Employee Evaluations
As the play on words in our title suggests, in today’s article we are going to put the whole concept of employee performance evaluations on trial.
We’ve all heard about “forward-thinking” corporations starting to adopt varying methods for doing employee performance evaluations. But employee evaluations aren’t valuable for only big businesses – they’re worth their weight in gold for small businesses too. This becomes apparent when you run an evaluation on the whole concept of staff reviews. So, let’s take a basic strengths and weaknesses evaluation approach and get started…
Strengths of Employee Evaluations:
- Employee performance evaluations effectively help you to analyze the utility and potential of what is likely your most valuable business assets. Organizations as a whole pay a large amount in salaries each year, and have hundreds of hours of time at their disposal. The people, aka the assets, through which these hours are consumed could be better utilized (via extra training or a different workload), but companies would never know this without periodic evaluations!
- Employee performance evaluations motivate employees to perform to their full potential. The stick and carrot combination of exposure for either doing their job very well or poorly is a strong reason for most members of any form of team to do their best at all times.
- Without employee reviews, there is very limited goal setting and progress evaluation. Tracked goals and progress give not only individual employees, but a whole team of employees something to aim towards. We recommend setting up many smaller achievable milestones for best results.
Weaknesses of Employee Evaluations:
- Unfortunately, employee evaluations do require employers to shell out for “intangible” results that aren’t always immediately evident. You can however try to track these results by keeping records of things like your staff turnover rate and value of work produced per employee. Not surprisingly, these figures tend to become more positive when employee performance reviews are done on a regular basis. Ultimately corporations have to believe that employee evaluations are an investment and not a waste of money or time.
Clearly, for almost any form of business or organization, doing staff reviews on a regular basis is worthwhile. Consider: It’s as logical to do these evaluations to check your human capital as it is for a manufacturing plant to check its physical assets.